Partners capital balances after withdrawal

Assignment Help Accounting Basics

Reference no: EM13158290

Long-term partners, Pop, Ping, and Pam have capital balances of $60,000, $45,000, and $30,000, respectively. They share in profits and losses 50%-to-30%-to-20%, respectively. All assets are valued fairly. Pam decides to retire from the partnership. Calculate the remaining partners' capital balances after the Pam withdrawal under the following situations:

a. Pam sells the interest to Ping for $25,000.

b. Pam sells the interest to the partnership for $25,000; bonus method is used.

c. Pam sells the interest to the partnership for $40,000; goodwill attributable only to the existing partner is recorded.

Reference no: EM13158290

Questions Cloud

Prepare a multiple-step income statment : Need to prepare a multiple-step income statment for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles(including format and terminology).

Determining impacted public and private securit : Describe in incident that have impacted public and private security. What should have been done to mitigate the incident?

Compute the profit-maximizing price and output levels : Compute the profit-maximizing price and output levels assuming Pear acts as a monopolist for its product. Determine the total contribution to profits and fixed costs from the solution generated in Part (a).

America voter participation with struggle : Write a 1- to 2-page paper comparing and contrasting America's voter participation with the struggle for the democratic right to vote by another country or group of people. Be sure to:

Partners capital balances after withdrawal : All assets are valued fairly. Pam decides to retire from the partnership. Calculate the remaining partners' capital balances after the Pam withdrawal under the following situations:

Research methods and statistical data : Research statistical data in a business context that requires a decision. Use probability concepts to formulate a decision. Explain research methods and process for limiting the uncertainty in the decision.

Determining acceptable levels of cohesion and adaptability : Identify a family from a television series/movie or literary work. Demonstrate the acceptable levels of cohesion and adaptability within that system and note tensions as members struggle with these levels.

Gain or loss related to exchange rates : A U.S. manufacturer has sold goods to a foreign firm for a sale price of 80,000 FC on 12/15/X1. The invoice is due 1/15/X2. The U.S. Firm fiscal year is 12/31/X1. Given the following exchange rates, what gain or loss would the U.S. firm record on ..

Define primary pit field : what happens to a primary pit field as a meristematic cell differentiates into a sieve cell ( what does it become and how)

User Account

All Pages